YES

We show the termination of the TRS R:

  *(x,+(y,z)) -> +(*(x,y),*(x,z))

-- SCC decomposition.

Consider the dependency pair problem (P, R), where P consists of

p1: *#(x,+(y,z)) -> *#(x,y)
p2: *#(x,+(y,z)) -> *#(x,z)

and R consists of:

r1: *(x,+(y,z)) -> +(*(x,y),*(x,z))

The estimated dependency graph contains the following SCCs:

  {p1, p2}


-- Reduction pair.

Consider the dependency pair problem (P, R), where P consists of

p1: *#(x,+(y,z)) -> *#(x,y)
p2: *#(x,+(y,z)) -> *#(x,z)

and R consists of:

r1: *(x,+(y,z)) -> +(*(x,y),*(x,z))

The set of usable rules consists of

  (no rules)

Take the reduction pair:

  matrix interpretations:
  
    carrier: N^1
    order: standard order
    interpretations:
      *#_A(x1,x2) = x2
      +_A(x1,x2) = x1 + x2 + 1

The next rules are strictly ordered:

  p1, p2

We remove them from the problem.  Then no dependency pair remains.